Tag: Economic fundamentals

The Financial Times’ Martin Wolf Discovers that Rentier Capitalism and Financialization Increase Inequality and Hurt Growth

Surprisingly, no one commented on a link to an important article by the Financial Times’ esteemed economics editor, Martin Wolf, Martin Wolf: why rigged capitalism is damaging liberal democracy, that weighed in as a major feature, as opposed to his usual column length. Wolf’s article is noteworthy by virtue of singling out, above all, rentier […]

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Brexit: A Repeat of the Turmoil of 1914-1922?

Yves here. This post recaps some critical elements of regularly-ugly British-Irish relationship and raises questions about Brexit. I suspect most US and even some UK readers will find it informative. If nothing else, it provides an alternative to Boris Johnson “We’re near a deal” posturing that EU officials have to rouse themselves to debunk. By […]

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Drama in the Oil Markets After Attacks on Saudi Production. But This Isn’t 2007 Anymore

Yves here. Wolf’s post focuses on the economic impact of the loss of Saudi oil production via drone strikes over the weekend. He thus skips over a point important to the geopolitically-minded: the Saudis have not confirmed US claims that the attacks are Iranian in origin and have asked the US to share its intel. […]

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Keynes Was Really a Conservative

Yves here. Note that Keynes was not concerned with the preoccupations of classical economists, who saw curbing rentiers as important, since their profiteering interfered with productive activity. Keynes had a more benign view of commerce. But he might have needed to see, say, the US health care industry in action to get a more rounded […]

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Dude! Where’s My Democracy?

By Kevin Albertson, Professor of Economics at Manchester Metropolitan University with a background in statistics and political economics. He is co-author of five books, including the Haynes Guide ‘How to Run the Country’. Originally published at openDemocracy Democracy is unwell, so it is said. In America and other leading democracies citizens are apparently increasingly critical […]

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The US Massively Underestimates the Trade War Blowback

Yves here. Even though most readers know the general point very well, that US trade and financial sanctions haven’t brought targets to their knees, and had instead pushed them to find allies, but it’s useful to have detail to flesh out the story. There are some bits one can quibble with, like the “annexation of […]

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Kalecki, Minsky, and “Old Keynesianism” Vs. “New Keynesianism” on the Effect of Monetary Policy

By Tracy Mott, Professor, University of Denver. Originally published at the Institute for New Economic Thinking website In a postco-authored with Anna Stansbury, Larry Summers repudiates economic orthodoxy in regard to whether interest rate cuts suffice to restore full employment and looks at a more “original” Keynesianism to find adequate responses to secular stagnation. Tracy […]

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Axios: What’s the Actual Cost of Not Addressing Climate Change?

Yves here. To put the cost of Sanders’ Green New Deal plan in context, it’s roughly what we spend on the US military when you throw in all the black budgets. Yet we somehow can’t afford to save the climate, particularly, as the article points out, the “cost” pays for itself? But sadly, as some […]

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Who’s Responsible for the Ecocide in the Amazon

Yves here. This post makes what may seem to be a basic point about the hidden hand of ideology and corporate backers, but it is interestingly often lost. Plus the “ecocide” frame is important. By Juan Manuel Crespo, an Ecuadorian sociologist, political scientist and photographer. He is engaged in action-oriented social research at the Institute […]

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Is it Really “Full Employment”? Margins for Expansion in the US Economy in the Middle of 2019

Yves here. This post is particularly timely given the seeming disconnect between weak job creation but headline unemployment holding rock steady. We’ve described some of factors that make employment conditions less rosy than they seem, such as that job creation has overwhelmingly been in relatively low-skill, poorly paid positions, and that the level of involuntary […]

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Marshall Auerback: We Are Clearly Living in a Bizarro Capitalism Era—And It’s Time to Change How the World Manages Economies

Lambert here: For those not familiar with “Bizarro World”: More pertinently: By Marshall Auerback, a market analyst and commentator. This article was produced by Economy for All, a project of the Independent Media Institute. Remember “Bizarro Superman,” the character who represented the polar opposite of Superman and all that he stood for? Today we have […]

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Wolf Richter: World Trade Skids for First Time Since Financial Crisis

By Wolf Richter, a San Francisco based executive, entrepreneur, start up specialist, and author, with extensive international work experience. Originally published at Wolf Street. Exports by China, Japan, and Eurozone under pressure — in part because of globally weak demand for new vehicles, which transcends the trade war. World trade volume – a measure of […]

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Trump’s China Trade War Gaslighting: Will There Evah Be a Deal?

Trump has been up to what he seems to like to do best: whipsawing those who might be affected by his plans. On Friday, he put Mr. Market and huge swathes of Corporate America in a tizzy by retaliating against China’s tariff increases. China announced that it would impose new tariffs on $75 billion of […]

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Italy’s Right-Wing Government Collapses – Will the Next One Be Better?

Yves here. We’ve been giving short shrift to Italy because so much has been happening on other fronts, but also because Italian politics are even during normal times, daunting for outsiders, and these are not normal times. However, the fracture in Italy is taking place under the backdrop of Eurozone-created stresses continuing to damage its […]

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The Fed Thinks the US Economy Is Fine. Do You?

Fed spokescritters are saying the US economy is in decent health. From Bloomberg: The U.S. economy doesn’t appear to be headed toward a recession, Federal Reserve Bank of San Francisco President Mary Daly said. “When I look at the data coming in, I see solid domestic momentum that points to a continued economic expansion,” Daly […]

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Cheerleading for Austerity

Yves here. Yet more tired arguments for not just “Why you can’t have nice things,” but “Why you must wear the austerity hairshirt.” Peter Dorman is likely correct in seeing that this scare talk is being revved up for 2020. Can’t have Sanders or Warren, now can we? By Peter Dorman, professor of economics at […]

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Hong Kong’s Economy Is Still Important to the Mainland, at Least Financially

Yves here. There’s a school of Hong Kong protestor critics that tries to depict them as sore losers over Hong Kong’s decline in status relative to mainland cities, particularly Shanghai. Some go further and charge that China doesn’t need Hong Kong. This article explains why those claims are exaggerated. By Alicia Garcia Herrero, the Chief […]

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Amid Recession Warnings, Trump Reportedly Considering More Tax Cuts for Rich and Corporations

Yves here. The thrust of Trump’s stimulus ideas make clear that his priority is to goose the stock market, not to do much for the broader economy. And that should come as no surprise. As we’ve pointed out a few times, small focus groups with Trump and Hillary voters found that the enthusiasm of Trump […]

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A New Assessment of the Role of Offshoring in the Decline in US Manufacturing Employment

Yves here. While this paper confirms what I suspect are most readers’ intuitions about offshoring, it’s nice to have it made official. By Christoph Boehm, Assistant Professor of Economics, University of Texas at Austin, Aaron Flaaen, Senior Economist, Research and Statistics Division, Federal Reserve Board, and Nitya Pandalai-Nayar, Assistant Professor of Economics, University of Texas […]

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Life, Deferred: Student Debt Postpones Key Milestones for Millions of Americans

By Natalia Abrams, the Executive Director of Student Debt Crisis, and Cody Hounanian, the Program Director of Student Debt Crisis. Originally published at openDemocracy Student debt has been solely responsible for the majority of my decision-making as an adult(Erin – Portland, Maine) The student debt crisis is not the burden of a single generation. It […]

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